Code Of Conduct 0610 8w3m

GARP Code of Conduct

Adopted: February 26, 2007 Revised: June 23, 2010

June 23, 2010

GARP Code of Conduct

[

GARP Code of Conduct

I.

] Risk practitioners should understand these as concepts

Introductory Statement

that reflect an evolving shared body of professional stanThe GARP Code of Conduct (“Code”) sets forth principles

dards and practices. In considering the issues this raises,

of professional conduct for Global Association of Risk

ethical behavior must weigh the circumstances and the

Professionals (“GARP”), Financial Risk Management (FRM®)

culture of the applicable global community in which the

and Energy Risk Professional (ERP®) certifications and other

practitioner resides.

GARP certification and diploma holders and candidates, GARP’s Board of Trustees, its Regional Directors, GARP

II.

Code of Conduct

Committee and GARP’s staff (hereinafter collectively referred to as “GARP ”) in of the

The Code is comprised of the following Principles, Pro-

advancement of the financial risk management profession.

fessional Standards and Rules of Conduct which GARP

These principles promote the highest levels of ethical con-

agree to uphold and implement.

duct and disclosure and provide direction and for both the individual practitioner and the risk management

1.

Principles

1.1

Professional Integrity and Ethical Conduct. GARP

profession. The pursuit of high ethical standards goes beyond following the letter of applicable rules and regulations and

shall act with honesty, integrity, and compe-

behaving in accordance with the intentions of those laws

tence to fulfill the risk professional’s responsibilities

and regulations, it is about

and to uphold the reputation of the risk management

The pursuit of high ethical

pursuing a universal ethical

profession. GARP must avoid disguised con-

standards goes beyond following

culture.

trivances in assessments, measurements and processes

the letter of applicable rules

All individuals, firms

that are intended to provide business advantage at the

and regulations and behaving

and associations have an

in accordance with the intentions

ethical character. Some of

of those laws and regulations,

the biggest risks faced by

it is about pursuing a universal

firms today do not involve

sibility to promote the interests of all relevant con-

ethical culture.

legal or compliance viola-

stituencies and will not knowingly perform risk

tions but rest on decisions

management services directly or indirectly involving

involving ethical considerations and the application of

expense of honesty and truthfulness. 1.2 Conflicts of Interest. GARP have a respon-

an actual or potential conflict of interest unless full

appropriate standards of conduct to business decision

disclosure has been provided to all affected parties

making.

of any actual or apparent conflict of interest. Where

There is no single prescriptive ethical standard that can be globally applied. We can only expect that GARP Mem-

conflicts are unavoidable GARP commit to their full disclosure and management.

bers will continuously consider ethical issues and adjust their conduct accordingly as they engage in their daily activities. This document makes references to professional standards and generally accepted risk management practices.

1.3 Confidentiality. GARP will take all reasonable precautionary measures to prevent intentional and unintentional disclosure of confidential information.

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June 23, 2010

2.

GARP Code of Conduct

consideration that could be reasonably expected to

Professional Standards

compromise their own or another’s independence and objectivity.

2.1 Fundamental Responsibilities. •

GARP must endeavor, and encourage others, to operate at the highest level of profes-

1.3 Must take reasonable precautions to ensure that the

sional skill.

Member’s services are not used for improper, fraudulent

•

GARP should always continue to perfect

or illegal purposes.

•

GARP have a personal ethical respons-

their expertise. analysis, recommendations, actions, or other profes-

responsibility to others.

sional activities.

2.2 Best Practices. •

1.4 Shall not knowingly misrepresent details relating to

ibility and cannot out-source or delegate that

1.5 Shall not engage in any professional conduct involving

GARP will promote and adhere to applica-

dishonesty or deception or engage in any act that

ble “best practice standards,” and will ensure that

reflects negatively on their integrity, character, trust-

risk management activities performed under his/her

worthiness, or professional ability or on the risk

direct supervision or management satisfies these

management profession.

applicable standards. •

GARP recognize that risk management

1.6 Shall not engage in any conduct or commit any act

does not exist in a vacuum. GARP commit

that compromises the integrity of GARP, the (Financial

to considering the wider impact of their assess-

Risk Manager) FRM designation or the integrity or

ments and actions on their colleagues and the wider

validity of the examinations leading to the award of the

community and environment in which they work.

right to use the FRM designation or any other credentials that may be offered by GARP.

2.3 Communication and Disclosure. GARP issuing any communications on behalf of their firm will

1.7 Shall endeavor to be mindful of cultural differences

ensure that the communications are clear, appropriate

regarding ethical behavior and customs, and to avoid

to the circumstances and their intended audience, and

any actions that are, or may have the appearance of

satisfy applicable standards of conduct.

being unethical according to local customs. If there appears to be a conflict or overlap of standards, the GARP member should always seek to apply the higher

III. Rules of Conduct

standard. 1.

Professional Integrity and Ethical Conduct 2.

Conflict of Interest

GARP : 1.1

Shall act professionally, ethically and with integrity in all dealings with employers, existing or potential clients, the public, and other practitioners in the

GARP : 2.1 Shall act fairly in all situations and must fully disclose any actual or potential conflict to all affected parties.

financial services industry. 2.2 Shall make full and fair disclosure of all matters that 1.2 Shall exercise reasonable judgment in the provision

could reasonably be expected to impair their independ-

of risk services while maintaining independence of

ence and objectivity or interfere with their respective

thought and direction. GARP must not offer,

duties to their employer, clients, and prospective clients.

solicit, or accept any gift, benefit, compensation, or

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June 23, 2010

3.

Confidentiality GARP :

3.1 Shall not make use of confidential information for

GARP Code of Conduct

5.

General Accepted Practices GARP :

5.1 Shall execute all services with diligence and perform all

inappropriate purposes and unless having received

work in a manner that is independent from interested

prior consent shall maintain the confidentiality of their

parties. GARP should collect, analyze and

work, their employer or client.

distribute risk information with the highest level of professional objectivity.

3.2 Must not use confidential information to benefit personally.

5.2 Shall be familiar with current generally accepted risk management practices and shall clearly indicate any

4.

Fundamental Responsibilities GARP :

4.1 Shall comply with all applicable laws, rules, and

departure from their use. 5.3 Shall ensure that communications include factual data and do not contain false information.

regulations (including this Code) governing the GARP ’ professional activities and shall not knowingly participate or assist in any violation of such laws, rules,

5.4 Shall make a distinction between fact and opinion in the presentation of analysis and recommendations.

or regulations. IV. Applicability and Enforcement 4.2 Shall have ethical responsibilities and cannot out-source or delegate those responsibilities to others.

Every GARP Member should know and abide by this Code. Local laws and regulations may also impose obligations on

4.3 Shall understand the needs and complexity of their employer or client, and should provide appropriate and suitable risk management services and advice.

GARP . Where local requirements conflict with the Code, such requirements will have precedence. Violation(s) of this Code by may result in, among other things, the temporary suspension or permanent removal

4.4 Shall be diligent about not overstating the accuracy or certainty of results or conclusions.

of the GARP Member from GARP’s hip roles, and may also include temporarily or permanently removing from the violator the right to use or refer to having earned

4.5 Shall clearly disclose the relevant limits of their specific

the FRM designation or any other GARP granted designa-

knowledge and expertise concerning risk assessment,

tion, following a formal determination that such a violation

industry practices and applicable laws and regulations.

has occurred.

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Creating a culture of risk awareness.TM

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About GARP | The Global Association of Risk Professionals (GARP) is a not-for-profit global hip organization dedicated to preparing professionals and organizations to make better informed risk decisions. hip represents over 100,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions, and corporations from more than 195 countries. GARP isters the Financial Risk Manager (FRM®) and the Energy Risk Professional (ERP®) exams; certifications recognized by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels. www.garp.org.

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